Derivatives Strategy - Covered Put - ICICI Securities

Recommendation

Sell Kotak Bank June future at Rs. 1250-1260 & sell 1200 Put at Rs. 26-28
Target: Rs. 1174
Stop loss: Rs. 1319
Time frame: Till June expiry

Rationale

The Bank Nifty outperformed the Nifty and moved towards 21300 twice last week. However, weakness in broader indices continued along with selling by FIIs in cash, which will keep banking stocks under pressure.

Kotak Bank in the private space has witnessed continued profit booking since Rs. 1400. However, possibility of capping the promoter term at 10 years added more pressure on the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_DerivativesStrategy_KotakBank_Jun20.pdf

Shares of KOTAK MAHINDRA BANK LTD. was last trading in BSE at Rs.1249.55 as compared to the previous close of Rs. 1279.55. The total number of shares traded during the day was 138530 in over 10391 trades.

The stock hit an intraday high of Rs. 1272.95 and intraday low of 1237.25. The net turnover during the day was Rs. 172974951.

Source : Equity Bulls

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